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Some announcements that may impact the markets this week
Big news for this week!
Below
are some announcements that may impact the markets this week:
(All
Times are in GMT)
News Event Analysis
On Thursday
the BoE and ECB will make public their interest rate decisions. Any
movement away from market consensus may significantly increase volatility. It
is also worth looking at any changes in the way that the individuals voted to
get a clearer idea of where rates may be heading.
Market News
The
potential for increased volatility when trading Gold over the FOMC decision is
always likely. At the time of writing the central bank is likely to
continue tapering the asset purchase program, so attention moves to the
accompanying statement to get an indication of an eventual rate rise. A
dollar rally and Gold suppression is one outcome if the rhetoric downplays
inflation expectations and champions progress in the labour market. It
all about intonation.
HIROSE News
Binaries - stripping down to basiscs.
Last week I
talked about Discipline. If you follow the rules you can succeed.
It is possible!
This week is a quick recap on Money Management.
Money Management
Effective money
management should be designed in conjunction with your trading strategy.
Remember, with a payout ratio of 80% you only need to be correct 55% of the
time to make consistent profits.
A general
recommendation would be to risk up to form 1 - 5% of your capital with the
potential to increase this as your strategy develops and your confidence grows.
If you have $100 in your account then trade 1 - 5 dollars. First of all
this will help preserve your capital and allow you to iron out any
inconsistencies in a live environment. It will also give you a psychological
advantage of not over leveraging your trades, one of classic mistakes of
trading.
Expectations
Another classic mistake of traders is to have unrealistic expectations.
If you anticipate you are going to make £100,000 in the next month with £1000
capital it is likely that you will ultimately have a negative trading
experience. A much more realistic expectation would be to look to achieve
20% per month, which equates to $200. This is still a fabulous return on
your capital, but the point is your money management plan should fit around
your strategy, your available capital and your expected and actual returns.
If you would
like aSkype tutorialwith screen sharing
just sign up here:
http://hiroseuk.com/support/contact_us/s_sharing.php
Happy trading!
The Hirose UK Team